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ACT ON LIVESTOCK FARM ALLIANCE SYSTEMS

Act No. 11357, Feb. 22, 2012

Amended by Act No. 11690, Mar. 23, 2013

Act No. 12435, Mar. 18, 2014

Act No. 12814, Oct. 15, 2014

Act No. 13144, Feb. 3, 2015

Act No. 14988, Oct. 31, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to soundly developing the livestock industry and national economy by strengthening the competitiveness of farmers raising livestock and vertical integrators in the livestock industry; and by promoting fair trade and mutual cooperation between farmers raising livestock and vertical integrators in the livestock industry by providing for matters necessary for vertical integration in the livestock industry.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "livestock" means cattle, poultry, etc. under subparagraph 1 of Article 2 of the Livestock Industry Act;
2. The term "breeding stock" means livestock for breeding (including eggs for breeding) under subparagraph 2 of Article 2 of the Livestock Industry Act;
3. The term "livestock products" means livestock products, etc. under subparagraph 3 of Article 2 of the Livestock Industry Act;
4. The term "vertical integration in the livestock industry" (hereinafter referred to as "vertical integration") means the business of fully or partially integrating the raising of livestock, the production of livestock products, slaughter of livestock, the processing and distribution of livestock products;
5. The term "vertical integrator in the livestock industry" (hereinafter referred to as "vertical integrator") means a person who engages in vertical integration by entering into a contract with farmers raising livestock under the contract under subparagraph 6;
6. The term "farmer raising livestock under the contract" (hereinafter referred to as "contract farmer") means a person who enters into a contract for raising livestock with a vertical integrator, raises livestock after having been supplied with all or some livestock or materials for raising livestock, such as feed, by the vertical integrator, and ship livestock to the vertical integrator;
7. The term "cost of raising livestock" means the cost which a vertical integrator pays to a contract farmer, which includes expenses incurred in raising livestock, the cost of materials, performance-based bonuses, etc.
 Article 3 (Persons subject to This Act)
Vertical integrators subject to this Act shall be persons, the size of whose business is prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs for each kind of livestock based on the number of livestock raised under the contract. <Amended by Act No. 11690, Mar. 23, 2013>
CHAPTER II MASTER PLAN, ETC. FOR DEVELOPMENT OF VERTICAL INTEGRATION IN LIVESTOCK INDUSTRY
 Article 4 (Formulation and Implementation of Master Plan and Action Plan)
(1) The Minister of Agriculture, Food and Rural Affairs shall formulate a master plan for developing vertical integration in the livestock industry (hereinafter referred to as "master plan") every five years to develop vertical integration and improve the competitiveness thereof. <Amended by Act No. 11690, Mar. 23, 2013>
(2) A master plan shall include the following:
1. Direction-setting and objectives for the development of vertical integration;
2. Matters concerning strategies to develop vertical integration for each livestock;
3. Matters concerning creatinng infrastructure for developing vertical integration and the strengthening of the competitiveness thereof;
4. Matters concerning supporting and evaluating vertical integration;
5. Matters concerning policy to promote cooperation between contract farmers and vertical integrators;
6. Matters concerning establishing orderly, fair trade in vertical integration;
7. Other matters necessary for developing vertical integration.
(3) The Minister of Agriculture, Food and Rural Affairs shall annually formulate and implement an action plan to develop vertical integration in the livestock industry (hereinafter referred to as "action plan") based on a master plan. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Where it is necessary to formulate and implement a master and an action plan, the Minister of Agriculture, Food and Rural Affairs may request the heads of related central administrative agencies; the heads of local governments; related institutions or organizations; contract farmers and vertical integrators, to provide necessary data and information. In such cases, persons requested to provide data and information shall comply with such request unless in an extenuating circumstance. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 5 (Supply and Demand Regulation, etc.)
(1) Where a vertical integrator, producers' organization, etc. (hereafter in this Article referred to as "producer, etc.") makes a request, in which case overproduction is forecasted in comprehensive consideration of trends in the raising of livestock, market prices, etc., the Minister of Agriculture, Food and Rural Affairs may, in consultation with the Fair Trade Commission, require vertical integrators to jointly adjust the production or regulate the shipment of the relevant livestock or livestock products within a certain area for a certain period. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a producer, etc. intends to request adjusting production or regulating shipment pursuant to paragraph (1), he/she shall prepare a written request stating matters under paragraph (3), undergo procedures for gathering opinions from stakeholders and distribution experts, and obtain consent of at least two-thirds of the incumbent members of representatives of producers, etc. of the relevant livestock product or the relevant producers, etc., or consent of producers, etc. who raise or produce at least two-thirds of the relevant livestock (including livestock products).
(3) Necessary matters concerning criteria and specific procedures, and operating methods for adjusting production or regulating shipment under paragraph (1) shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
CHAPTER III CONTRACT AND MATTERS TO BE OBSERVED
 Article 6 (Principle of Good Faith)
A vertical integrator and a contract farmer shall conscientiously perform his/her contractual duties in good faith.
 Article 7 (Preparation, etc. of Written Contract)
(1) Where a vertical integrator intends to enter into a contract related to the raising of livestock with a contract farmer, he/she shall prepare a written contract including the following and deliver the written contract immediately after entering thereinto: <Amended by Act No. 11690, Mar. 23, 2013>
1. Matters concerning quality standards and indicating quality of livestock and materials for raising livestock, such as feed, supplied by the vertical integrator;
2. Matters concerning quality standards of livestock shipped by the contract farmer;
3. Matters concerning the details of, methods of paying and the date for paying the cost of raising livestock;
4. Other matters prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs, such as facilities to raise livestock.
(2) The Minister of Agriculture, Food and Rural Affairs may designate a standard form contract in consultation with the Fair Trade Commission and recommend vertical integrators, etc. to establish fair trade. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Agriculture, Food and Rural Affairs may determine and publicly announce matters concerning quality standards and quality indication of materials for raising livestock under paragraph (1) 1; matters concerning quality standards of livestock shipped by contract farmers under subparagraph 2 of the aforesaid paragraph; and matters concerning facilities for raising livestock under subparagraph 4 of the aforesaid paragraph. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 8 (Payment, etc. of Cost of Raising Livestock)
(1) In principle, the cost of raising livestock paid by a vertical integrator to a contract farmer shall be paid in cash.
(2) Where livestock have been shipped to a vertical integrator by a contract farmer, the vertical integrator shall immediately issue a receipt irrespective of whether livestock have been inspected.
(3) The deadline for paying the cost of raising livestock shall be fixed within the shortest period not exceeding 25 business days from the date the shipment of livestock is completed: Provided, That in extenuating circumstances, such as a natural disaster, the payment deadline may exceed 25 days based on an agreement between a contract farmer and a vertical integrator.
(4) Where the deadline for paying the cost of raising livestock has not been fixed or has been fixed in excess of 25 business days, in violation of the main sentence of paragraph (3), the date for receiving livestock shall be deemed fixed as the payment deadline.
(5) Where a vertical integrator pays the cost of raising livestock after the payment deadline without any justifiable reason, he/she shall pay the cost of raising livestock plus interest based on the interest rate prescribed by Presidential Decree for the period after the payment deadline.
 Article 9 (Matters That Should Be Observed)
(1) No vertical integrator shall engage in the following: <Amended by Act No. 11690, Mar. 23, 2013>
1. Refusing to receive livestock shipped by a contract farmer: Provided, That the foregoing shall not apply where reasons prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs arise, such as damage to livestock shipped;
2. Reducing the cost of raising livestock: Provided, That the foregoing shall not apply where reasons prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs arise, such as damage to livestock shipped;
3. Failing to pay the cost of raising livestock by the payment deadline under Article 8 (3): Provided, That the foregoing shall not apply where reasons prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs arise;
4. Supplying materials for raising livestock not meeting quality standards under Article 7 (1) 1;
5. Prescribing standards for inspecting livestock, etc., which are objectively inappropriate, contrary to the public announcement made by the Minister of Agriculture, Food and Rural Affairs under Article 7 (3), or applying such standards;
6. Giving a disadvantage to a contract farmer by amending the contract or failing to perform the contract without prior notice;
7. Requesting matters not specified in the contract;
8. Other conduct prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs that disrupt trading order.
(2) No contract farmer shall engage in any of the following: <Amended by Act No. 11690, Mar. 23, 2013>
1. Evading the shipment of livestock where the price of livestock rises;
2. Violating the contract terms concerning the quality of livestock supplied by a vertical integrator and the time of shipment;
3. Unreasonably requesting the vertical integrator to raise the cost of raising livestock, etc.;
4. Giving a disadvantage to the vertical integrator by amending the contract or failing to perform under the contract without prior notice;
5. Unreasonably requesting matters not specified in the contract;
6. Other conduct prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs that disrupt trading order.
CHAPTER IV DESIGNATION OF AND SUPPORT TO EXEMPLARY BUSINESS OPERATORS
 Article 10 (Designation of Exemplary Business Operators)
(1) The Minister of Agriculture, Food and Rural Affairs may designate a person who is examplary in mutual cooperation, etc. with a contract farmer among vertical integrators as an exemplary business operator. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Necessary matters concerning criteria for designating, methods of evaluating, etc. exemplary business operators under paragraph (1) shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 11 (Application for Designation, etc.)
(1) A person who intends to be designated as an exemplary business operator shall file an application for designation with the Minister of Agriculture, Food and Rural Affairs; and if his/her business is altered after he/she has been designated as an exemplary business operator, shall report any alteration to the Minister of Agriculture, Food and Rural Affairs within 30 days from the date any alteration is made: Provided, That no application may be filed within two years after the designation of an exemplary business operators was revoked pursuant to Article 13. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The designation of an exemplary business operator shall be valid for two years from the date of designation, and may be extended.
(3) A person who intends to obtain an extension of the period of validity of the designation of an exemplary business operator under paragraph (2) shall file an application to extend the validity with the Minister of Agriculture, Food and Rural Affairs 60 days before the period of validity expires. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Upon receipt of an application for extension under paragraph (3), the Minister of Agriculture, Food and Rural Affairs may extend the period thereof by up to two years where he/she deems the extension meets criteria for designation under Article 10 (2). <Amended by Act No. 11690, Mar. 23, 2013>
(5) Necessary matters concerning procedures, methods, etc. for filing an application for designation of an exemplary business operator and extension of the designation thereof shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 12 (Support to Exemplary Business Operators)
The Minister of Agriculture, Food and Rural Affairs may provide the following support to exemplary business operators and contract farmers affiliated therewith, within budgetary limits: <Amended by Act No. 11690, Mar. 23, 2013>
1. Preferential support of policy funds, such as facility and operating expenses incurred in achieving vertical integration;
2. Preferential treatment when implementing policies and systems, such as interest rates, towards vertical integrators;
3. Granting rewards or other necessary support.
 Article 13 (Revocation of Designation of Exemplary Business Operators)
(1) Where an exemplary business operator falls under any of the following, the Minister of Agriculture, Food and Rural Affairs may revoke the designation thereof: Provided, That where he/she falls under subparagraph 1, the Minister of Agriculture, Food and Rural Affairs shall revoke the designation thereof: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where he/she has been designated falsely or fraudulently;
2. Where he/she fails to meet criteria for designation referred to in Article 10 (2);
3. Where the quantity of a product a vertical integrator has purchased from a contract farm is less than half of the total quantity of the product purchased.
(2) Where the Minister of Agriculture, Food and Rural Affairs intends to revoke designation pursuant to paragraph (1), he/she shall hold a hearing. <Newly Inserted by Act No. 12814, Oct. 15, 2014>
(3) Necessary matters concerning procedures, etc. for revoking designation shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
CHAPTER V COUNCIL OF CONTRACT FARMERS RAISING LIVESTOCK AND COUNCIL OF VERTICAL INTEGRATION IN LIVESTOCK INDUSTRY
 Article 14 (Council of Contract Farmers)
(1) Contract farmers may voluntarily establish the council of contract farmers raising livestock (hereinafter referred to as the "Council of Farmers") to form a mutually equal contractual relationship with, and to create infrastructure for confidence in, a vertical integrator.
(2) Where the Council of Farmers requests a vertical integrator to consult on contract terms, the quality of livestock, feed, etc., and a plan for raising livestock and disease management, the vertical integrator shall hold consultations.
(3) Where a dispute arises between a contract farmer and a vertical integrator, the Council of Farmers may consult with the vertical integrator, representing or on behalf of the contract farmer.
(4) Where contract farmers form the Council of Farmers, no vertical integrator shall interfere with the formation thereof or give a disadvantage to contract farmers.
 Article 15 (Establishment and Functions of Council of Vertical Integration in Livestock Industry)
(1) Vertical integrators and contract farmers may establish the council of vertical integration in the livestock industry (hereinafter referred to as the "Council of Vertical Integration") in the association of the livestock industry nationwide to promote an equal contractual relationship and improve mutual benefits through mutual participation and cooperation.
(2) Major functions of the Council of Vertical Integration shall be as follows: <Amended by Act No. 11690, Mar. 23, 2013>
1. Consulting on matters requested by the Council of Farmers pursuant to Article 14 (2);
2. Pre-coordinating and consulting on disputes between vertical integrators and contract farmers;
3. Other matters prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs, which are issues of mutual concern on the development of vertical integration.
(3) Necessary matters concerning the formation, operation, etc. of the Council of Vertical Integration shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
CHAPTER VI MEDIATION TO SETTLE DISPUTES AND DISPUTE MEDIATION COMMITTEE ON VERTICAL INTEGRATION IN LIVESTOCK INDUSTRY
 Article 16 (Establishment of Dispute Mediation Committee on Vertical Integration in Livestock Industry)
(1) The Dispute Mediation Committee on Vertical Integration in the Livestock Industry (hereinafter referred to as the "Mediation Committee") shall be established in the Ministry of Agriculture, Food and Rural Affairs to mediate disputes between vertical integrators and contract farmers. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Subcommittees by type of livestock may be established in the Mediation Committee for the efficient operation thereof, and the chairperson of the Mediation Committee shall prescribe necessary matters concerning the formation and operation of subcommittees following resolutions adopted by the Mediation Committee.
 Article 17 (Affairs under Jurisdiction of Mediation Committee)
Affairs under the jurisdiction of the Mediation Committee shall be:
1. Matters concerning written contracts under Article 7;
2. Matters concerning the cost of raising livestock, etc. under Article 8;
3. Matters concerning whether a vertical integrator observes matters that should be observed under Article 9;
4. Other matters on the chairperson of the Mediation Committee deems it necessary to mediate a dispute.
 Article 18 (Jurisdiction)
The Mediation Committee shall have jurisdiction over matters to which a vertical integrator or a contract farmer raises an objection in the Council of Vertical Integration because he/she is dissatisfied with the result of autonomous prior mediation; and over affairs concerning mediation to settle disputes under Article 25 (4).
 Article 19 (Composition, etc. of Mediation Committee)
(1) The Mediation Committee shall be comprised of not more than nine members including one chairperson.
(2) The Mediation Committee shall consist of the same number of members representing public interest; members representing the interests of vertical integrators; and members representing the interests of contract farmers, respectively.
(3) The term of office of members of the Mediation Committee shall be two years, and they may serve consecutive terms.
 Article 20 (Appointment, etc. of Members of Mediation Committee)
(1) The Minister of Agriculture, Food and Rural Affairs shall appoint or commission members of the Mediation Committee from among the following persons who have extensive knowledge of and experience in the livestock industry: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13144, Feb. 3, 2015>
1. Public officials belonging to the Senior Executive Service or public officials of Grade III or IV of the Ministry of Agriculture, Food and Rural Affairs;
2. Producers or executive officers of producers' organizations;
3. Vertical integrators or executive officers of vertical integrators' organizations;
4. Consumers or executive officers of consumers' organizations;
5. Judges, public prosecutors or persons who are qualified as attorneys-at-law;
6. Experts in academic circles or research circles who have extensive knowledge and experience in the livestock industry.
(2) The chairperson of the Mediation Committee shall be elected by the Mediation Committee from among its members representing public interest referred to in Article 19 (2).
(3) The Minister of Agriculture, Food and Rural Affairs may appoint standing members from among public officials under his/her jurisdiction. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 21 (Grounds for Disqualification)
None of the following persons shall serve as a member of the Mediation Committee: <Amended by Act No. 12435, Mar. 18, 2014>
1. An adult placed under legal guardianship, a quasi-incompetent placed under legal guardianship, or a person declared bankrupt who has not been reinstated;
2. A person in whose case two years have not passed from the date he/she served his/her sentence (including cases where he/she is deemed to have served his/her sentence) or his/her sentence was exempted after he/she had been sentenced to imprisonment or severer punishment;
3. A person who was sentenced to imprisonment or a more severe punishment with a stay of execution and the execution of his/her sentence is being stayed;
4. A person whose qualification has been suspended by a court decision or pursuant to Acts.
 Article 22 (Duties, etc. of Chairperson)
(1) The chairperson of the Mediation Committee shall represent the Mediation Committee and preside over its affairs.
(2) Where the chairperson of the Mediation Committee is unable to perform his/her duties due to extenuating circumstances, a member pre-appointed by the chairperson from among the relevant members shall perform such duties on behalf of the chairperson.
 Article 23 (Exclusion, etc. of Members)
(1) Where a member of the Mediation Committee falls under any of the following, he/she shall be excluded from performing his/her duties:
1. Where the member or his/her current or former spouse becomes a party to the relevant dispute or has a right or duty jointly with the party to the relevant dispute;
2. Where the member is or was a relative under Article 770 of the Civil Act of a party to the relevant dispute;
3. Where the member or a corporation to whom he/she belongs is a consultant or advisor on legal affairs, management, etc. of a party to the dispute;
4. Where the member or a corporation to whom he/she belongs is or was involved in the relevant dispute as an agent of the relevant person with the relevant dispute, or provided testimony for or gave an expert's opinion on the relevant dispute.
(2) Where there is a ground for exclusion, the Mediation Committee shall determine exclusion by its official authority or upon request of the person concerned.
(3) Where it is difficult for the relevant person with a dispute to expect the member to fairly perform his/her duties, the person concerned with the dispute may file an application for challenge with the Mediation Committee; and where the Mediation Committee deems his/her application for challenge reasonable, it may decide to allow challenge.
(4) Where the member falls under paragraph (1) or (3), he/she may voluntarily abstain from performing duties in relation to the dispute.
(5) Upon receipt of an application for challenge under paragraph (3), the Mediation Committee shall suspend the mediation proceedings until it decides on such application.
 Article 24 (Enactment of Rules)
The Minister of Agriculture, Food and Rural Affairs may prescribe procedures for conducting affairs under the jurisdiction of the Mediation Committee and the other rules concerning the operation of the Mediation Committee. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 25 (Mediation, etc. to Settle Disputes)
(1) Where a dispute between a vertical integrator and contract farmer arises, the vertical integrator or the contract farmer shall file an application for mediation to settle the dispute with the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Special Self-governing City Mayor, the Do Governor or the Special Self-governing Province Governor (hereinafter referred to as "Mayor/Do Governor") having jurisdiction over the location thereof.
(2) Upon receipt of an application for mediation under paragraph (1), the Mayor/Do Governor shall notify the relevant persons of the details thereof; may recommend them to reach agreement; and shall immediately notify the Mediation Committee of measures he/she has taken: Provided, That where the content of an application for mediation to settle a dispute falls under any of the following, he/she may choose not to recommend the relevant persons to reach agreement or not to submit the application for mediation to settle the dispute to the Council of Vertical Integration under paragraph (3): <Amended by Act No. 11690, Mar. 23, 2013>
1. Where a case is already presented to a court, or a party to the dispute files a suit after he/she filed an application for mediation to settle the dispute;
2. Where the Mayor/Do Governor deems the content of an application inappropriate for a case subject to the mediation to settle the dispute;
3. Where the content of an application is impractical to proceed with recommending to reach an agreement and the mediation proceedings in accordance with related Acts and subordinate statutes or objective data;
4. Where the content of an application falls under reasons prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs, which specify there are insufficient ground to deliberate on such application or mediate the dispute.
(3) Where the parties to a dispute fail to reach an agreement under paragraph (2) within ten days from the date the Mayor/Do Governor receives an application for mediation to settle the dispute, the Mayor/Do Governor shall immediately submit the application therefor to the Council of Vertical Integration.
(4) Notwithstanding paragraph (1), any party to a dispute may file an application for mediation with the Mediation Committee where both parties to the dispute reach agreement and the Council of Vertical Integration has not been established.
(5) Upon receipt of an application for mediation under paragraph (3), the Council of Vertical Integration shall deliberate on the dispute and prepare a proposal for mediation within 30 days.
(6) Where the chairperson of the Council of Vertical Integration prepares a proposal for mediation, he/she may present the proposal for mediation to the applicant and the relevant persons and recommend them to accept the proposal for mediation.
 Article 26 (Objections, etc. to Decisions on Mediation)
(1) Where a vertical integrator or a contract farmer has an objection to the result of mediation of the Council of Vertical Integration, the chairperson of the Council of Vertical Integration shall immediately submit an application for mediation to settle the relevant dispute, to the Mediation Committee.
(2) Upon receipt of an application for mediation under paragraph (1), the Mediation Committee shall deliberate on the dispute and prepare a proposal for mediation within 60 days.
(3) Where the chairperson of the Mediation Committee prepares a proposal for mediation, he/she shall present the proposal for mediation to the applicant and the relevant persons and recommend them to accept the proposal for mediation or require them to take corrective action. In such cases, a recommendation to accept the proposal for mediation made or an order to take corrective action issued by the chairperson of the Mediation Committee, shall be deemed made or issued by the Minister of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 27 (Meetings of Mediation Committee)
(1) The chairperson of the Mediation Committee shall convene its meetings.
(2) The Mediation Committee shall hold its meetings when a majority of constituent members is present; and shall adopt resolutions with the concurrent votes of a majority of the members present.
(3) Where the Minister of Agriculture, Food and Rural Affairs deems mediation to settle a dispute adopted by the Mediation Committee illegal or substantially unreasonable in light of public interest, he/she may request the Mediation Committee to reconsider the matter. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Where the Minister of Agriculture, Food and Rural Affairs makes a request for reconsideration under paragraph (3), the Mediation Committee shall hold its meetings when two-thirds of the constituent members are present and adopt resolutions with the concurrent votes of two-thirds of the members present.
 Article 28 (Preparation of Mediation Report and Validity thereof)
(1) Where the parties to a dispute reach an agreement through mediation, the Mediation Committee shall prepare a mediation report to which members who participate in mediation and the parties to the dispute affix their signatures or signatures and seals.
(2) Where the parties to a dispute settles the dispute that requires mediation for themselves and require the Mediation Committee to prepare a mediation report before it commences the process of mediation, the Mediation Committee may prepare the mediation report.
 Article 29 (Termination of Mediation)
(1) Where the Mediation Committee deems that it is impractical for the parties to a dispute to reach an agreement to the relevant dispute, it may terminate mediation by determining not to mediate the dispute.
(2) Where the parties to a dispute fail to give notification that they accept a recommendation under Article 26 (3) within a designated period, mediation between the parties to the dispute shall be terminated.
(3) Where mediation is terminated pursuant to paragraph (1) or (2), the Mediation Committee shall notify the parties to a dispute of such termination of mediation.
(4) Where a party to a dispute who receives notification pursuant to paragraph (3) files a suit within 30 days from the date he/she receives notification, an application for mediation shall be deemed a request for judicial review in calculating the period of suspension of prescription and filing a suit.
CHAPTER VII SUPPLEMENTARY PROVISIONS
 Article 30 (Issuance of Certificates)
The Mayor/Do Governor may issue a certificate as to whether a vertical integrator is a vertical integrator under this Act, as prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 31 (Corrective Action)
(1) The Minister of Agriculture, Food and Rural Affairs or the Mayor/Do Governor may recommend or require persons who violate Articles 7 through 9, 14 (2) and (4) and 33 to take measures to rectify the relevant violations. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Matters necessary to recommend or require violators to take corrective action under paragraph (1) shall be prescribed by Presidential Decree.
 Article 32 (Reports, Inspections and Disclosure) <Amended by Act No. 14988, Oct. 31, 2017>
(1) The Minister of Agriculture, Food and Rural Affairs may require vertical integrators and contract farmers to file reports or submit documents concerning the formulation of policies on vertical integration and the reasonable operation thereof; or shall require public officials under his/her jurisdiction to ask the relevant persons questions or inspect related documents. <Amended by Act No. 11690, Mar. 23, 2013>
(2) In cases falling under paragraph (1), the Minister of Agriculture, Food and Rural Affairs may require vertical integrators exceeding the scale prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs to submit data, such as the status of the raising of livestock. <Amended by Act No. 11690, Mar. 23, 2013>
(3) A public official who conducts an inspection pursuant to paragraph (1) shall carry an identity document indicating his/her authority and produce it to relevant persons.
(4) The Minister of Agriculture, Food and Rural Affairs may disclose the current status, etc. of the raising of livestock of vertical integrators submitted to him/her pursuant to paragraph (2) for regulating supply and demand and transparency in distribution: Provided, That the foregoing shall not apply to trade secrets under subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act. <Newly Inserted by Act No. 14988, Oct. 31, 2017>
(5) Information subject to disclosure, methods, procedures, etc. for disclosing information under paragraph (4), shall be prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Newly Inserted by Act No. 14988, Oct. 31, 2017>
 Article 33 (Improvement of Unfair Business Practices)
The Minister of Agriculture, Food and Rural Affairs or the Mayor/Do Governor may inspect whether a vertical integrator complies with Articles 7, 8 and 9 (1) in the course of transactions between the vertical integrator and contract farmers; and shall require the relevant vertical integrator to improve matters required to be improved, as prescribed by Ordinance of the Ministry of Agriculture, Food and Rural Affairs. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 34 (Application of Monopoly Regulation and Fair Trade Act Mutatis Mutandis)
Article 62 (Duty of Confidentiality) of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the following persons:
1. Members or public officials who perform duties under this Act;
2. Members in charge of mediation to settle disputes in the Council of Vertical Integration and the Mediation Committee.
CHAPTER VIII PENAL PROVISIONS
 Article 35 (Penal Provisions)
Any person who violates Article 62 of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis pursuant to Article 34 shall be punished by imprisonment with prison labor for not more than two years or by a fine not exceeding 20 million won. <Amended by Act No. 12814, Oct. 15, 2014>
 Article 36 (Administrative Fines)
(1) Any vertical integrator who commits any of the following offenses shall be punished by an administrative fine not exceeding 30 million won: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14988, Oct. 31, 2017>
1. A person who fails to prepare or deliver a written contract without any justifiable reason, in violation of Article 7;
2. A person who fails to observe matters to be observed without any justifiable reason, in violation of Article 9 (1);
3. A person who fails to comply with a corrective measure under Articles 26 (3) and 31 (1) taken by the Minister of Agriculture, Food and Rural Affairs or the Mayor/Do Governor;
4. A person who refuses, interferes with or evades reporting or inspection under Article 32 (1);
5. A person who refuses, interferes with or evades submitting documents under Article 32 (1) or data under paragraph (2) of the aforesaid Article, or who submits false documents or data.
(2) Where an executive or employee of a vertical integrator, or an interested party commits an offense falling under each subparagraph of paragraph (1), or a contract farmer commits an offense falling under any of paragraph (1) 3 through 5, he/she shall be punished by an administrative fine not exceeding ten million won. <Amended by Act No. 14988, Oct. 31, 2017>
(3) Each Mayor/Do Governor shall impose and collect administrative fines under paragraphs (1) and (2), as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Mediation to Settle Disputes, etc.)
An application for mediation to settle a dispute under Article 25 shall begin to apply from the first contract a vertical integrator and a contract farmer execute after this Act enters into force.
Article 3 (Transitional Measures concerning Vertical Integrators in Livestock Industry)
A person designated as a vertical integrator in the livestock industry pursuant to the Scope of and Methods of Designation of Vertical Integrators in the Livestock Industry announced by the Minister of Agriculture, Food and Rural Affairs before this Act enters into force shall be deemed a vertical integrator in the livestock industry under this Act.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12435, Mar. 18, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetents, etc.)
A person in whose case the validity of the declaration of incompetent or quasi-incompetent is maintained pursuant to Article 2 of Addenda of the Civil Act partly amended by Act No. 10429 shall be deemed included in an adult placed under legal guardianship or a quasi-incompetent placed under the protection of a legal guardian under the amended provisions of subparagraph 1 of Article 21.
ADDENDUM <Act No. 12814, Oct. 15, 2014>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 35, shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 13144, Feb. 3, 2015>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 14988, Oct. 31, 2017>
This Act shall enter into force on the date of its promulgation.